Merck - The consulting firm Merck hired to recommend the...

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BADM 691 Dr. France Merck Case John Zuercher Main Points 1. Merck is in bad shape as a company with a falling stock price, Vioxx lawsuits, and many of its top-selling drugs scheduled to go off patent. Also the company recently replaced their CEO, who was in desperate need of a win. Merck really needed to “hit a homerun” with the launch of Gardasil. 2. 20 Million people in the U.S. have HPV and another 6.5 million become infected each year according to the CDC. HPV infection can lead to cervical cancer. HPV can lead to cervical intraepithelial neoplasia (CIN). CIN has three phases, CIN 3 being the highest. Cervical cancer is the second most common type of cancer in women worldwide. The Pap test reduced the number of cervical cancer deaths. Cervical cancer tends to occur in mid-life, ages 35-55. 3. Most vaccines are inexpensive, priced between $20 and $75.
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Unformatted text preview: The consulting firm Merck hired to recommend the price of the vaccine suggested a price of $120 per dose. Gardasil is the first vaccine to prevent a type of cancer. Merck invested over a billion dollars in developing Gardasil. They price per dose not only needed to be set to cover these costs, but also to help the company raise its stock price. Industry analysts projected annual revenues of $4 billion. 4. Cervarix, another HPV vaccine, was being developed by GlaxoSmithKline. Cevarix had a similar safety profile and efficacy as Gardasil. Cevarix protected only against HPV types 16 and 18. Cevarix was a year behind Gardasil in terms of FDA approval and its launch. Questions 1. What do you think the public’s reaction would be to Gardasil not eliminating the need for annual Pap exams in women? 2. At what price would you set Gardasil?...
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This note was uploaded on 10/16/2010 for the course B&E BADM 691 taught by Professor France during the Spring '10 term at WVU.

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Merck - The consulting firm Merck hired to recommend the...

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